If you cannot maintain your current workforce because your operations have been severely affected by coronavirus (COVID-19), you can furlough employees and apply for a grant that covers 80% of their usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and pension contributions (up to the level of the minimum automatic enrolment employer pension contribution) on that subsidised furlough pay.

From August 2020, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work. That means that for June and July the government will continue to pay 80% of people’s salaries. In the following months, businesses will be asked to contribute a share, but crucially individuals will continue to receive that 80% of salary covering the time they are unable to work.

It is designed to help employers whose operations have been severely affected by coronavirus (COVID-19) to retain their employees and protect the UK economy. However, all employers are eligible to claim under the scheme and the government recognises different businesses will face different impacts from coronavirus.

The portal is available from 20 April 2020, and we have been informed that you must be enrolled with PAYE online to access the scheme. If you aren’t already enrolled, please visit the HMRC’s website and get enrolled now - https://www.gov.uk/paye-online/enrol

HMRC are running webinars on how to make a claim. Booking can fill up fast and the lastest available times can be found here.

We will support businesses by deferring Valued Added Tax (VAT) payments for 3 months. If you’re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.

VAT

For VAT, the deferral will apply from 20 March 2020 until 30 June 2020.

Eligibility

All UK businesses are eligible.

VAT payments you can defer

You can only defer:

quarterly and monthly VAT returns’ payments for the periods ending in February, March and April

payments on account due between 20 March 2020 and 30 June 2020

annual accounting advance payments due between 20 March 2020 and 30 June 2020

The deferral does not cover payments for VAT MOSS or import VAT.

How to access the scheme

This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.

The new Coronavirus Business Interruption Loan Scheme supports SMEs with access to working capital (including loans, overdrafts, invoice finance and asset finance) of up to £5 million in value and for up to 6 years.

The government will pay to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will not face any upfront costs and will benefit from lower initial repayments.

The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs.

This scheme is being delivered through commercial lenders, backed by the British Business Bank.

Eligibility

You are eligible for the scheme if:

your business is UK based, with turnover of no more than £45 million per year

your business meets the other British Business Bank eligibility criteria

How to access the scheme

The scheme is now open for applications. To apply, you should talk to your bank or one of the 40 accredited finance providers (not the British Business Bank) as soon as possible, to discuss your business plan. You can find out the latest on the best ways to contact them via their websites.

All major banks are offering this scheme. If you have an existing loan with monthly repayments you may want to ask for a repayment holiday to help with cash flow.

The Government have recognised some of the issues raised by businesses trying to access the scheme and have announced that lenders will be banned from requesting personal guarantees on loans under £250,000.

The CBILS has also been extended so that all viable small businesses affected by COVID-19, and not just those unable to secure regular commercial financing, will now be eligible.

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) aims to support large businesses, with an annual turnover of between £45 million and £500 million, to access loans of up to £25 million.

The Chancellor has now announced that all viable businesses with turnover of more than £45m will be able to apply for government-backed support.

Firms with turnover of more than £250 million can borrow up to £50 million from lenders. This has been increased to £500 million from the 26th May.

The government will provide lenders with a guarantee of 80% on each loan to give lenders confidence in continuing to provide finance.

The Government will bring forward legislation to allow small and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. The eligibility criteria for the scheme will be as follows:

this refund will cover up to 2 weeks’ SSP per eligible employee who has been off work because of COVID-19

employers with fewer than 250 employees will be eligible - the size of an employer will be determined by the number of people they employed as of 28 February 2020

employers will be able to reclaim expenditure for any employee who has claimed SSP (according to the new eligibility criteria) as a result of COVID-19

employers should maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note. If evidence is required by an employer, those with symptoms of coronavirus can get an isolation note from NHS 111 online and those who live with someone that has symptoms can get a note from the NHS website

eligible period for the scheme will commence the day after the regulations on the extension of SSP to those staying at home comes into force

the government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible

Business rates holiday for retail, hospitality and leisure businesses

We will introduce a business rates holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year.

Businesses that received the retail discount in the 2019 to 2020 tax year will be rebilled by their local authority as soon as possible.

Eligibility

You are eligible for the business rates holiday if:

your business is based in England

your business is in the retail, hospitality and/or leisure sector

Properties that will benefit from the relief will be occupied hereditaments that are wholly or mainly being used:

as shops, restaurants, cafes, drinking establishments, cinemas and live music venues

for assembly and leisure

as hotels, guest & boarding premises and self-catering accommodation

How to access the scheme

There is no action for you. This will apply to your next council tax bill in April 2020. However, local authorities may have to reissue your bill automatically to exclude the business rate charge. They will do this as soon as possible.

Tax

Grant income received by a business is taxable therefore the Retail, Hospitality and Leisure Grants will be subject to tax for those businesses which make an overall profit once grant income is included will be subject to tax.

The government will provide additional Small Business Grants Fund funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBBR), rural rate relief (RRR) and tapered relief. This will provide a one-off grant of £10,000 to eligible businesses to help meet their ongoing business costs.

Eligibility

You are eligible if:

your business is based in England

you are a small business and already receive SBBR and/or RRR

you are a business that occupies property

How to access the scheme

You do not need to do anything. Your local authority will write to you if you are eligible for this grant.

Eligible businesses should now begin receiving the grants from their Local Authority.

Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant local authority.

The Self-employment Income Support Scheme (SEISS) will support self-employed individuals (including members of partnerships) who have lost income due to coronavirus (COVID-19).

This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.

Self-employed people can now make their claim on a specified date between 13-18 May, based on their Unique Tax Reference number. HMRC has assigned eligible self-employed individuals a specific date to apply on and this can be checked on HMRC’s online checker.

Everyone eligible for the SEISS will be able to receive the government grant by 25 May, or within six days of a completed claim.

The scheme is available to anyone with trading profits of up to £50,000 where the majority of their income comes from self-employment and has a 2019 tax return.

Those eligible under the Self-Employment Income Support Scheme (SEISS) will be able to claim a second and final grant in August. The grant will be worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.

The Government have introduced temporary new measures to protect retail premises against aggressive debt recovery actions during the coronavirus pandemic.

Statutory demands and winding up petitions issued to commercial tenants will be temporarily voided and changes to be made to the use of Commercial Rent Arrears Recovery, building on measures already introduced in the Coronavirus Act.

To stop unfair practices, the government will temporarily ban the use of statutory demands (made between 1 March 2020 and 30 June 2020) and winding up petitions presented from Monday 27 April, through to 30 June, where a company cannot pay its bills due to coronavirus.

Government is also laying secondary legislation to provide tenants with more breathing space to pay rent by preventing landlords using Commercial Rent Arrears Recovery (CRAR) unless they are owed 90 days of unpaid rent.

Businesses that have cover for both pandemics and government-ordered closure should be covered, as the government and insurance industry confirmed on 17 March 2020 that advice to avoid pubs, theatres etc is sufficient to make a claim as long as all other terms and conditions are met.

Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers. Most businesses are unlikely to be covered, as standard business interruption insurance policies are dependent on damage to property and will exclude pandemics.

The Northern Ireland Executive have announced the following measures to support businesses:

COVID Small Business Grant - Small business grant of £10,000 for all businesses with a NAV up to £15,000

Hospitality, Tourism and Retail Sectors Grant Scheme - An immediate grant of £25,000 will be provided to companies in these sectors with a rateable value up to £51,000.

All NI businesses will pay zero rates for the next three months (April, May, June). This applies to all businesses and does not need to be repaid.

Applications for the £25,000 grant scheme are now open and eligible businesses have until the 20th May to apply to the scheme. The application form can be found here.

Hardship Fund

The Department for the Economy has announced a new business Hardship Fund.

The scheme will aim to assist businesses in Northern Ireland with less than ten employees that require financial support due to the impact of COVID-19.

The funding will be available to businesses which have not qualified for the £10,000 small business grant and the £25,000 Retail, Hospitality, Tourism and Leisure scheme. These grants close to applications on Wednesday 20 May.

Social enterprises and charities will be able to access the Hardship Fund if they meet the eligibility criteria.

Around 8,000 businesses across Northern Ireland will qualify for this new financial support scheme.

Details on the Hardship Fund, including scheme eligibility criteria will be available in the week beginning 11 May.

The Scottish Government announced that business are now able to apply via their Local Authority to one of the grants for Retailers and those receiving Small Business Bonus Scheme relief and Rural Relief.

To apply, you'll need to complete an application form. You can find this form on your local council website. Further details on how to do so can be found here.

2nd phase funding

On the 15th April the Scottish Government announced that a further £220 million will be made available for businesses - including the recently self-employed - to help them deal with the ongoing impact of the coronavirus (COVID-19) outbreak.

The new package of measures includes £120 million to extend the Small Business Grant scheme to so that, in addition to a 100% grant on the first property, small business rate payers will be eligible to a 75% grant on all subsequent properties.

A further £100 million fund is also being made available to protect self-employed people and viable micro and SME businesses in distress due to COVID. This fund will be channelled through local authorities and enterprise agencies to target newly self-employed people and businesses who are ineligible for other Scottish Government or UK Government schemes.

Applications for the £100 million fund will be open by the end of the month, and the new arrangements for the Small Business Grant will be in place to receive applications on 5 May.

The fund will consist of:

£34 million Newly Self-Employed Hardship Fund, managed by Local Authorities, will be allocated to the newly self-employed facing hardship through £2,000 grants.

£90 million Pivotal Enterprise Resilience Fund, managed by the Enterprise Agencies for vulnerable SME firms who are vital to the local or national economic foundations of Scotland.

A further £20 million will be avaliable as the Creative, Tourism & Hospitality Enterprises Hardship Fund, managed by the Enterprise Agencies in partnership with Creative Scotland and VisitScotland for creative, tourism and hospitality companies not in receipt of business rates relief.

Following engagement from the HTA the Scottish Government have published a letter confirming that garden centres will be able to operate a home delivery service for seeds, plants and associated gardening supplies. The Letter can be found here.

Business in Wales are being urged to contact the Business Wales telephone helpline on 03000 60 3000, which provides practical support on issues including staffing, financial planning and supply chain support.

The Welsh Government have provided further details on the package of measures they announced last week.

Rates relief
All retail, leisure and hospitality businesses with a rateable value of below £500,000 will receive a 100% business rates relief in 2020 to 2021.

This will be administered through the business rates system and your Local Authority will contact you.

Grants
Retail, leisure and hospitality businesses with a rateable value of £12,001 and £51,000 will receive a grant of £25,000.

All businesses that are eligible for Small Business Rates Relief will get a grant of £10,000.

You do not need to do anything to apply for the grant. This will be administered through the business rates system. Your Local Authority will contact you.

Small businesses will be able to apply for a new business grant. Details about how to apply will be made available as soon as possible.

Economic Resilience Fund

The Welsh Government has announced its intention to launch an Economic Resilience Fund.

The fund aims to provide support for businesses and organisations not captured by the Job Retention Scheme and the Self-Employed Income Support Scheme and have been forced to temporarily cease trading – to go into “hibernation” – or which need cash-flow support to adapt to a remote way of working.

The Fund will make available:

a new £100 million Development Bank of Wales fund will be available for companies experiencing cash flow problems as a result of the pandemic and will provide loans of between £5,000 and £250,000 at favourable interest rates.

Grants of £10,000 for micro-businesses employing up to nine people. This includes sole traders employing staff.

Grants of up to £100,000 for small and medium-sized firms with between 10 and 249 employees.

Support for larger Welsh companies, which are of critical social or economic importance to Wales. This element will be open to qualifying businesses within the next two weeks.